Members of the public have been cautioned by the Economic and Financial Crimes Commission (EFCC) to be wary of the activities of some estate developers in the Federal Capital Territory (FCT), who are in the habit of defrauding those aspiring to be home owners through unrealistic offers.
In a statement released on Tuesday by the Head, Media and Publicity of EFCC, Wilson Uwujaren, the Commission noted that it has recorded an upsurge in the number of reported cases of individuals, mostly low and middle income earners, who have been swindled after they responded to advertisement for subscription to own property in many of the estates being promoted by unscrupulous developers in the FCT.
The statement reads in part, “Usually, the so called developers, once they are able to secure land allocation from the FCDA, create gorgeous computer-assisted designs of prototype estate and launch aggressive media blitzs for prospective home owners to subscribe for different categories of houses at attractive prices. They target low and middle income earners who cannot afford outright cash purchase of property in the burgeoning capital city. For this category of citizens, such offers are irresistible as they present immediate escape from the burden of prohibitive yearly rent payments. They embrace such scheme with the hope that the payment spread over many years will provide the cushion to do other things.
“But no sooner than they pay the initial deposits, they are inundated with various excuses as explanation for the developers’ inability to deliver the properties. Some have waited for many years hoping against hope for their promised houses to be delivered. While the hapless prospective home owners rue their plight, the so-called developers disappear completely from the radar to enjoy their loot. Those who do not disappear continue to make promises that are never redeemed. The more ruthless amongst them are prepared to wear out the scammed subscribers through tedious litigations in court, fully aware that many of the low income persons lacked the resources to sustain legal actions over a long time.
“Even the subscribers, who brave the courts and secure legal respite, discover to their chagrin that recovering their money is near impossible. Often, the title to such properties would have long been mortgaged as collateral for loan facilities from some financial institutions by the developers.”
The EFCC, in the statement urged stakeholders in the real estate sector and regulatory agencies such as the Nigerian Society of Estate Surveyors and Valuers to unite in reviewing and firming up the regulatory framework for property development in the FCT to check the activities of unscrupulous private developers.
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